Deadline for banks to shift to new RTGS standards extended

The Reserve Bank has extended the timeline for banks to adopt new messaging standards in RTGS payment platform to March 31, 2014.

A new RTGS system was put in place in October this year that required banks to adopt ISO 20022 standard messaging formats.

Banks didn't take enough measures to handle ISO 20022 standard messages and are still relying on temporary solution provided by their IT and service providers for conversion of messages.

The RBI said that it received requests from banks to allow them to continue with the present arrangement till the required modifications were made at the core banking solution (CBS) at banks' end.

"On review of the request it has been decided to extend the time for adoption of ISO 20022 messaging seamlessly... up to March 31, 2014 by RTGS member banks," RBI said.

The objective of introducing ISO 20022 standard message format for payment system is to bring about standardisation in the messaging formats for various payment systems in the country and to conform to international standard, RBI said.

Under RTGS system, beneficiary branches receive funds in real time as soon as they are transferred by the remitting bank.

The beneficiary bank has to credit the beneficiary's account within two hours of receiving the funds transfer message.

RTGS system is meant for large value transactions. The minimum amount to be remitted through RTGS is Rs 2 lakh, while there is no upper ceiling.